I85PREP
⌘ K
CHSE Odisha Vocational Tax Assistance study materials
CHSE Odisha Vocational Tax Assistance study resources

CHSE Odisha Vocational Tax Assistance: Tax Deduction at Source, Advance Tax, and Filing Procedures

CHSE Odisha Vocational Tax Assistance · Work through your exam, one topic at a time.

All guide sections

Tax Deduction at Source, Advance Tax, and Filing Procedures

What this domain tests

This domain tests the pay-as-you-earn system: when the payer must deduct TDS, when the taxpayer must pay advance tax, and how the return is filed. It also tests the consequences of short deduction and delay.

Core rules

  • TDS is deducted by the person responsible for paying a specified sum. Common sections: 192 for salary; 194A for interest; 194C for contracts; 194H for commission or brokerage; 194I for rent; and 194J for professional or technical fees.
  • Thresholds matter. For example, section 194J generally applies when professional fees exceed ₹30,000 in a year; section 194I applies to rent above ₹2,40,000; section 194A has separate bank-interest thresholds. Salary has no threshold because the employer must estimate annual salary and deduct tax.
  • Advance tax is payable where tax liability for the year is ₹10,000 or more. Instalments: 15% by 15 June; 45% by 15 September; 75% by 15 December; and 100% by 15 March. A taxpayer under presumptive business taxation pays 100% by 15 March.
  • Return due dates: 31 July for non-audit cases; 31 October for audited cases; 31 December for a belated return. A revised return can be filed within the prescribed time. Late filing attracts a fee under section 234F and interest under sections 234A, 234B, and 234C.
  • Form ITR-1 is for simpler individual income; other forms apply to capital gains, business income, foreign assets, and higher income.

Worked example

A firm pays a professional ₹80,000 for services in a year. The payment exceeds the ₹30,000 threshold under section 194J, so TDS at 10% = ₹8,000 is deductible. If the firm pays the full ₹80,000 without deduction, it may be treated as an assessee in default and face interest and penalty. The professional can claim credit for the ₹8,000 only if it appears in Form 26AS/AIS and the TDS return.

Traps

TDS is not a separate tax; it is a credit against the final liability. Do not miss the advance-tax instalment dates. A belated return cannot generally be revised.